Cramer's 'Mad Money' Recap: Nov. 10

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General Motors (GM Quote) must be saved if there is any hope for a sustainable rally in the stock market, Jim Cramer said Monday on his "Mad Money" TV show.

He told viewers not to count on such news as the Chinese economic stimulus, which prompted an early rally today in the Dow Jones Industrial Average before it closed down 73.27 points, or 0.8%, to 8870.54, after being up by as much as 215 points.

Cramer said the markets cannot rally until the federal government offers a bailout not only to GM but also Ford(F Quote) and Chrysler. "It's all one piece," he said.

He said the Bush administration has done plenty to help preserve the bonuses and dividends of troubled financial institutions while leaving workers on Main Street to fend for themselves. He said President-elect Barack Obama understands the need to bailout of the auto industry is all about saving jobs.

Cramer said his East Coast friends have joked about the idea extending a hand to well-paid autoworkers who do little work. But he said the only real option to get a sustainable market rally is to go through with the bailout for Detroit.

Failure to do so would result in a worsening economy and further declines in the market and 401Ks.

Cramer: Inside Goldman's Slump

Time to Yield

Cramer said this is a time in the market where traders need stocks with high dividend yields --anything over 4%.

More importantly, he noted, it's key to look for "accidental high-yielders." These are solid companies that are offering a high yield because of an overdone stock decline.

Such a stock is PPG Industries(PPG Quote), which is down 50% from its 52-week high. But Cramer believes the stock, which is now offering a 4.65% yield, has been unfairly punished, as the company has raised its dividend every year since 1972.

Cramer reiterated his idea that traders reinvest the dividend in the stock so that they can capture the power of the compounding dividend even if the stock does nothing for a while.

Cramer also likes that the company because it has $600 million in cash, which could mean a stock buyback program.

He also likes the fact that one-third of the company's business is in Asia, making it a good Chinese infrastructure play, as well as the notion that the specialty chemicals maker will benefit from lower oil and natural gas prices in its manufacturing process.

"It's a broken stock with a great dividend to boot, not a broken company," Cramer said.

Mad Mail

A viewer wrote Cramer and asked if there was a trade in higher gun sales that are happening due to some perception of a crackdown coming from an Obama presidency. Cramer said there was not: "Sometimes there are things that aren't investible."

Cramer told another mail writer that he didn't favor the idea of reducing risk by buying mutual funds or exchange-traded funds with yields. He believes he can pick the best individual stocks offering top yields.

Another viewer asked Cramer if there were any healthcare of energy plays ahead of the Obama presidency. Cramer offered Tenet(THC Quote) as a healthcare play, but said any energy or solar names just aren't working right now.

"It's three months before this guy comes in, and there's a lot of pain before that," Cramer said.

Am I Diversified?

Cramer found three winning portfolio's in a special Monday edition of "Am I Diversified?"

The first caller's portfolio comprised Advanced Micro Devices(AMD Quote), CBS(CBS Quote), Caterpillar(CAT Quote), Procter & Gamble(PG Quote), and John Deere(DE Quote), the latter two which he also owns for his Action Alerts PLUS portfolio.

Cramer OK'd the holdings, saying Procter & Gamble holds up well in a tough economy, AMD is becoming an interesting speculation with an upcoming splitoff, while Caterpillar and Deere serve very different customers.

The next caller held Pfizer(PFE Quote), Oneok(OKS Quote), Bank of America(BAC Quote), AT&T(T Quote), and Altria(MO Quote), which he also owns for his Action Alerts PLUS portfolio.

Cramer blessed the portfolio, liking both the diversification and high-yield names.

He similarly gave the thumbs-up to a caller's holdings of USBancorp(USB Quote), Merck(MRK Quote), Chesapeake Energy(CHK Quote), Coca-Cola(KO Quote) and Altria as a well-diversified, nicely yielding portfolio.

Lightning Round

Cramer was not bullish on any stock.

He was bearish on Zoltek (ZOLT Quote); US Airways (LCC Quote); First Solar (FSLR Quote); First Solar (FSLR Quote); SanDisk (SNDK Quote).